Should contractors give Net 30 terms to apartment owners?
Sometimes Net 30 is reasonable. Sometimes it turns your company into the lender for a property owner or manager. The difference is discipline: clear approval rules, exposure limits, invoice backup, and escalation dates.
Short answer
Do not give open Net 30 terms until you know who is paying, what paperwork they require, how much exposure you can tolerate, and what happens if invoices age beyond the first payment cycle.
Use an A/R cap
Decide the maximum approved unpaid balance you will carry for that owner or manager. Increase it only after clean payment cycles.
Separate approved work from disputed extras
Unapproved time-and-material work, verbal changes, and scope drift should not quietly become unsecured credit.
Set a stop-work trigger
Define when crews stop mobilizing: a missed due date, rejected invoice with no cure plan, unpaid approved billing over the cap, or no written change-order approval.
Make invoice backup boring
Standardize invoice numbers, property codes, photos, signoffs, lien waivers, COIs, W-9s, and payment application packages so AP has fewer rejection excuses.
Review legal deadlines early
Notice, lien, bond, and collection deadlines vary. A licensed attorney can help protect rights before deadlines disappear.